2009 Global Survey of Cloud Computing: Executive Summary
2009 Global Survey of Cloud Computing: Executive Summary
2009 Global Survey of Cloud Computing: Executive Summary
Executive Summary
Executives around the globe are facing a conundrum. In the midst of widespread economic turmoil, a
recent global survey of C‐level executives and IT decision‐makers shows a clear, collective mandate: use
technology to cut the cost of doing business. Moreover, these decision‐makers widely recognize a new
technology option, Cloud Computing, as a viable way to reduce capital expenditures and operational
costs. Cloud computing refers to the delivery of software and other technology services over the
Internet by a service provider.
As the economy teeters on uncertain ground, however, these leaders – many of whom consider
themselves as early adopters of technology – are turning a blind eye to the potential business benefits
of cloud computing. They are unwilling to switch from internally owned and managed IT systems to
cloud computing technologies due to fears of security threats and loss of control over company systems
and data.
An independent market research firm, Kelton Research, completed a large‐scale survey of cloud
computing adoption in January 2009 commissioned by Avanade Inc. Key findings and data‐points that
support these trends are outlined in this report.
Poised to Adopt a Viable Solution
300 Adopt New
Like their peers, the survey respondents are under Technology to
enormous pressure to cut costs, and they see 200 Save Money
technology as a tool to streamline business Cut Back on
100
operations. By a wide margin, most business and IT New
executives are turning to new technologies to cut 0 Technology to
costs, rather than cutting back on their technology Save Money
# of Respondents
uptake (see Figure 1). Key data from the survey
shows: Figure 1
• The majority of companies surveyed (54 percent) use technology to cut costs.
• By a 5‐to‐2 ratio, respondents adopt new technologies to save money versus cutting back on
new technologies to save money.
• In the United States in particular, two‐thirds of respondents consider themselves early adopters
of technologies. Globally, nearly half consider themselves early adopters.
• Sixty percent report that existing internal IT systems are too expensive.
The business and IT leaders who responded to the survey feel they understand what cloud computing is
and believe it can positively impact bottom‐line results. The majority of respondents agreed cloud
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computing can lower up‐front and ongoing costs. They believe Cloud Computing allows their companies
to react quickly to market conditions and competitors – using the ability to immediately tap computing
power and software. Computing, and helps the company focus on its core business (see Figure 2 and
Avanade’s Cloud Computing Point of View paper for additional details).
Specific results from the survey include:
• Nine in 10 of C‐level executives and IT decision‐makers in the United States, and six of 10
globally, are familiar with cloud computing.
• Business executives and IT decision makers overwhelmingly agree that cloud computing is the
real deal (71 percent worldwide and 87 percent in the United States) – it is seen as a viable
technology option.
• Furthermore, nearly two in three IT execs worldwide and four of five in the United States
believe cloud computing reduces up‐front costs.
Cloud computing reduces up‐front costs
Cloud computing helps the company be more
flexible
% Who Agree
Cloud computing helps the company react % Who Disagree
quickly to market conditions
Cloud computing allows the company to focus
on its core business
0 20 40 60 80
Figure 2
Afraid to Change
Despite this widespread recognition that cloud computing is real and has the potential to improve a
company’s financial position and competitiveness, the clear majority (61 percent) of companies are not
using cloud computing technologies at this time. And the vast majority (84 percent) of those that
currently depend on internal IT systems have no plans to switch to cloud computing technologies in the
next 12 months.
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The survey shows a strong reluctance to change driven by fears of security threats and loss of control. In
this economic environment, costs are not a top barrier to change. These arguments and concerns reflect
earlier concerns about security and loss of control when e‐mail, the Internet and instant messaging
entered the workplace.
• Even though nearly half of respondents consider themselves early adopters of new
technologies, the majority of companies are afraid to change to cloud computing technologies.
• Of those who use internal IT systems, the vast majority of those companies (84 percent) have no
plans to switch to cloud computing in the next 12 months.
• By a 5‐to‐1 ratio, companies trust internal IT systems over cloud‐based technologies due to fear
about security threats and loss of control of data and systems.
The Business Value of Cloud
Those companies that have overcome skepticism or resistance due to security and control issues
associated with cloud computing report business benefits and accelerating use of cloud‐based
technologies. By turning to cloud computing for certain technology needs, instead of owning and
managing all IT systems, cloud computing can give companies the ability to free of resources to focus on
strategic business initiatives – helping them serve customers better, improve business performance and
win marketshare. It shifts the burden of managing IT and business processes away from companies and
allows them to focus on their core business.
Specifically, companies that have migrated to cloud computing technologies use it to manage and
deliver business applications such as customer relationship management (CRM) and human resources
(HR) services. And companies that currently use cloud computing in their IT operations are accelerating
their use of it in the economic downturn.
• Only 5 percent of companies surveyed currently rely solely on cloud computing technologies for
their IT needs.
• Half of those companies that have adopted cloud computing are using the technology for
business applications such as customer relationship management (CRM).
• Forty‐six percent of respondents are using cloud computing for data storage.
• Forty‐four percent of respondents use cloud computing for HR services like recruitment
management.
• Of those companies that use some form of cloud computing, more than a third (36 percent) are
increasing their use of since the economic downturn began in the summer of 2008.
The study comes at a crucial time for the technology industry as IT budgets are shrinking and new
technology options are becoming available to enterprises. Companies can use the findings of this survey
to define best practices and consider new technologies such as cloud computing in order to remain
competitive in the marketplace.
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Notes on Methodology
The Cloud Computing survey was conducted by Kelton Research, an independent research firm,
between December 15, 2008, and January 8, 2009, on behalf of Avanade.
The 502 respondents include C‐level executives (e.g. CEO, CFO, CIO, CTO), business leaders (GMs, heads
of departments and functions, etc.) and IT decision‐makers from 17 regions, including Austria, Australia,
Belgium, Canada, Denmark, Finland, France, Germany, Italy, Netherlands, Norway, Singapore, Spain,
Sweden, Switzerland, the United Kingdom and the United States. Large enterprises (similar in size to
companies in the FORTUNE 1000) made up the majority of respondents on a global basis. Respondents
from the United States, Canada and the United Kingdom originate from the top 1 percent of the largest
companies by employee headcount within their respective countries. Respondents from all other
countries originate from the top 5 percent of the largest companies by employee headcount within their
respective countries. Nearly a fourth (23 percent) of respondents work at the largest companies with
10,000 or more employees.
Companies surveyed span major industries, including
• Aerospace
• Defense
• Telecommunications
• Energy
• Healthcare
• Financial services
• Government
• Non‐profit
• Media
• Logistics
• Manufacturing
Results of any sample are subject to sampling variation. The magnitude of the variation is measurable
and is affected by the number of interviews and the level of the percentages expressing the results. In
this particular study, the chances are 95 in 100 that a survey result does not vary, plus or minus, by more
than 4.4 percentage points from the result that would be obtained if interviews had been conducted
with all persons in the universe represented by the sample.
All decimals in this report are rounded to the nearest percentage point. This may result in certain
numerical totals adding up to slightly more or slightly less than 100 percent.
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